Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 01, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 | |
Entity Registrant Name | IPG PHOTONICS CORP | |
Entity Central Index Key | 1,111,928 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 53,107,342 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 645,558 | $ 582,532 |
Short-term investments | 126,970 | 106,584 |
Accounts receivable, net | 162,725 | 150,479 |
Inventories | 242,370 | 203,738 |
Prepaid income taxes | 35,342 | 33,692 |
Prepaid expenses and other current assets | 38,913 | 25,564 |
Deferred income taxes, net | 24,620 | 20,346 |
Total current assets | 1,276,498 | 1,122,935 |
DEFERRED INCOME TAXES, NET | 15,371 | 9,386 |
GOODWILL | 20,142 | 505 |
INTANGIBLE ASSETS, NET | 28,372 | 11,904 |
PROPERTY, PLANT AND EQUIPMENT, NET | 367,474 | 288,604 |
OTHER ASSETS | 19,441 | 20,095 |
TOTAL | 1,727,298 | 1,453,429 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt | 3,188 | 2,000 |
Accounts payable | 17,899 | 26,314 |
Accrued expenses and other liabilities | 96,376 | 75,667 |
Deferred income taxes, net | 4,047 | 3,190 |
Income taxes payable | 34,117 | 37,809 |
Total current liabilities | 155,627 | 144,980 |
DEFERRED INCOME TAXES AND OTHER LONG-TERM LIABILITIES | 30,223 | 30,117 |
LONG-TERM DEBT, NET OF CURRENT PORTION | 38,432 | 17,667 |
Total liabilities | 224,282 | 192,764 |
COMMITMENTS AND CONTINGENCIES | ||
IPG PHOTONICS CORPORATION EQUITY: | ||
Common stock, $0.0001 par value, 175,000,000 shares authorized; 53,171,115 shares issued and 53,129,315 shares outstanding at September 30, 2016; 52,883,902 shares issued and outstanding at December 31, 2015 | 5 | 5 |
Treasury stock, at cost (41,800 and 0 shares held) | (3,483) | 0 |
Additional paid-in capital | 635,778 | 607,649 |
Retained earnings | 1,018,976 | 833,356 |
Accumulated other comprehensive loss | (148,430) | (181,482) |
Total IPG Photonics Corporation equity | 1,502,846 | 1,259,528 |
NONCONTROLLING INTERESTS | 170 | 1,137 |
Total equity | 1,503,016 | 1,260,665 |
TOTAL | $ 1,727,298 | $ 1,453,429 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 175,000,000 | 175,000,000 |
Common stock, shares issued (in shares) | 53,171,115 | 52,883,902 |
Common stock, shares outstanding (in shares) | 53,129,315 | 52,883,902 |
Treasury stock, shares (in shares) | 41,800 | 0 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
NET SALES | $ 266,017 | $ 243,541 | $ 726,052 | $ 677,639 |
COST OF SALES | 121,226 | 110,237 | 329,147 | 307,805 |
GROSS PROFIT | 144,791 | 133,304 | 396,905 | 369,834 |
OPERATING EXPENSES: | ||||
Sales and marketing | 10,460 | 7,717 | 28,183 | 23,228 |
Research and development | 20,543 | 16,221 | 56,444 | 45,565 |
General and administrative | 16,797 | 14,679 | 46,849 | 42,474 |
Loss (gain) on foreign exchange | 2,905 | 5,125 | 6,316 | (460) |
Total operating expenses | 50,705 | 43,742 | 137,792 | 110,807 |
OPERATING INCOME | 94,086 | 89,562 | 259,113 | 259,027 |
OTHER INCOME (EXPENSE), Net: | ||||
Interest income (expense), net | 373 | (40) | 835 | (335) |
Other income, net | 194 | 132 | 342 | 378 |
Total other income (expense) | 567 | 92 | 1,177 | 43 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 94,653 | 89,654 | 260,290 | 259,070 |
PROVISION FOR INCOME TAXES | (25,426) | (26,897) | (74,703) | (77,721) |
NET INCOME | 69,227 | 62,757 | 185,587 | 181,349 |
LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (8) | (34) | (33) | (101) |
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION | $ 69,235 | $ 62,791 | $ 185,620 | $ 181,450 |
NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER SHARE: | ||||
Basic (in dollars per share) | $ 1.30 | $ 1.19 | $ 3.50 | $ 3.45 |
Diluted (in dollars per share) | $ 1.29 | $ 1.18 | $ 3.45 | $ 3.40 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||
Basic (in shares) | 53,071 | 52,675 | 53,039 | 52,628 |
Diluted (in shares) | 53,761 | 53,392 | 53,752 | 53,390 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 69,227 | $ 62,757 | $ 185,587 | $ 181,349 |
Other comprehensive income, net of tax: | ||||
Translation adjustments | 8,068 | (16,540) | 32,948 | (43,634) |
Unrealized (loss) gain on derivatives | (47) | 0 | 104 | 95 |
Total other comprehensive loss | 8,021 | (16,540) | 33,052 | (43,539) |
Comprehensive income | 77,248 | 46,217 | 218,639 | 137,810 |
Comprehensive loss attributable to noncontrolling interest | (4) | (285) | (17) | (351) |
Comprehensive income attributable to IPG Photonics Corporation | $ 77,252 | $ 46,502 | $ 218,656 | $ 138,161 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 185,587 | $ 181,349 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 37,646 | 31,079 |
Deferred income taxes | (12,054) | (7,144) |
Stock-based compensation | 16,099 | 13,875 |
Unrealized losses (gains) on foreign currency transactions | 6,044 | (3,893) |
Other | 193 | 191 |
Provisions for inventory, warranty & bad debt | 33,506 | 29,414 |
Changes in assets and liabilities that (used) provided cash: | ||
Accounts receivable | (10,853) | (20,004) |
Inventories | (42,814) | (52,172) |
Prepaid expenses and other current assets | (4,102) | 2,062 |
Accounts payable | (9,816) | 4,519 |
Accrued expenses and other liabilities | 3,848 | 3,656 |
Income and other taxes payable | (7,439) | 17,501 |
Excess tax benefit from exercise of equity instruments | (2,844) | (5,822) |
Net cash provided by operating activities | 193,001 | 194,611 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of and deposits on property, plant and equipment | (100,047) | (50,759) |
Proceeds from sales of property, plant and equipment | 220 | 231 |
Purchases of short-term investments | (179,374) | 0 |
Proceeds from short-term investments | 158,808 | 0 |
Acquisition of businesses, net of cash acquired | (46,527) | (4,958) |
Other | 16 | 63 |
Net cash used in investing activities | (166,904) | (55,423) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from line-of-credit facilities | 6,030 | 7,506 |
Payments on line-of-credit facilities | (6,030) | (9,780) |
Purchase of noncontrolling interests | (950) | 0 |
Proceeds on long-term borrowings | 23,750 | 0 |
Principal payments on long-term borrowings | (1,797) | (12,833) |
Exercise of employee stock options and issuances under employee stock purchase plan | 9,186 | 10,489 |
Excess tax benefit from exercise of equity instruments | 2,844 | 5,822 |
Purchase of treasury stock, at cost | (3,483) | 0 |
Net cash provided by financing activities | 29,550 | 1,204 |
EFFECT OF CHANGES IN EXCHANGE RATES ON CASH AND CASH EQUIVALENTS | 7,379 | (11,322) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 63,026 | 129,070 |
CASH AND CASH EQUIVALENTS — Beginning of period | 582,532 | 522,150 |
CASH AND CASH EQUIVALENTS — End of period | 645,558 | 651,220 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for interest | 623 | 688 |
Cash paid for income taxes | 92,539 | 65,376 |
Non-cash transactions: | ||
Demonstration units transferred from inventory to other assets | 2,916 | 1,995 |
Inventory transferred to machinery and equipment | 4,056 | 2,371 |
Reductions to property, plant and equipment included in accounts payable | $ (430) | $ (178) |
Consolidated Statements Of Equi
Consolidated Statements Of Equity - USD ($) $ in Thousands | Total | COMMON STOCK | TREASURY STOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE LOSS | TOTAL IPG PHOTONICS CORPORATION EQUITY | NONCONTROLLING INTERESTS (NCI) |
Balance, beginning of year at Dec. 31, 2014 | $ 5 | $ 0 | $ 567,617 | $ 591,202 | $ (112,263) | $ 0 | ||
Balance, beginning of year (in shares) at Dec. 31, 2014 | 52,369,688 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of stock options (in shares) | 392,913 | |||||||
Common stock issued under employee stock purchase plan (in shares) | 17,623 | |||||||
Purchased treasury stock (in shares) | 0 | 0 | ||||||
Stock-based compensation | 13,875 | |||||||
Exercise of stock options and related tax benefit from exercise | $ 0 | 15,203 | ||||||
Common stock issued under employee stock purchase plan | 0 | 1,108 | ||||||
Purchased common stock | $ 0 | $ 0 | ||||||
Net income attributable to IPG Photonics Corporation | 181,450 | 181,450 | ||||||
Translation adjustments | (43,634) | (43,634) | ||||||
Change in unrealized gain on derivatives, net of tax | 95 | 95 | ||||||
Purchase of NCI | 0 | |||||||
Attribution to NCI | 1,579 | |||||||
Net loss attributable to NCI | 101 | (101) | ||||||
Other comprehensive income (loss) attributable to NCI | 351 | (250) | ||||||
Balance, end of period at Sep. 30, 2015 | 1,215,886 | $ 5 | $ 0 | 597,803 | 772,652 | (155,802) | $ 1,214,658 | 1,228 |
Balance, end of period (in shares) at Sep. 30, 2015 | 52,780,224 | 0 | ||||||
Balance, beginning of year at Dec. 31, 2015 | $ 1,260,665 | $ 5 | $ 0 | 607,649 | 833,356 | (181,482) | 1,137 | |
Balance, beginning of year (in shares) at Dec. 31, 2015 | 52,883,902 | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Exercise of stock options (in shares) | 268,198 | |||||||
Common stock issued under employee stock purchase plan (in shares) | 19,015 | |||||||
Purchased treasury stock (in shares) | (41,800) | |||||||
Stock-based compensation | 16,099 | |||||||
Exercise of stock options and related tax benefit from exercise | $ 0 | 10,737 | ||||||
Common stock issued under employee stock purchase plan | 0 | 1,293 | ||||||
Purchased common stock | $ 0 | $ (3,483) | ||||||
Net income attributable to IPG Photonics Corporation | 185,620 | 185,620 | ||||||
Translation adjustments | 32,948 | 32,948 | ||||||
Change in unrealized gain on derivatives, net of tax | 104 | 104 | ||||||
Purchase of NCI | (950) | |||||||
Attribution to NCI | 0 | |||||||
Net loss attributable to NCI | 33 | (33) | ||||||
Other comprehensive income (loss) attributable to NCI | 17 | 16 | ||||||
Balance, end of period at Sep. 30, 2016 | $ 1,503,016 | $ 5 | $ (3,483) | $ 635,778 | $ 1,018,976 | $ (148,430) | $ 1,502,846 | $ 170 |
Balance, end of period (in shares) at Sep. 30, 2016 | 53,129,315 | 41,800 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared by IPG Photonics Corporation, or "IPG", "its" or the "Company". Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The consolidated financial statements include the Company's accounts and those of its subsidiaries. All intercompany balances have been eliminated in consolidation. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2015 . In the opinion of the Company's management, the unaudited financial information for the interim periods presented reflects all adjustments necessary for a fair presentation of the Company's financial position, results of operations and cash flows. The results reported in these consolidated financial statements are not necessarily indicative of results that may be expected for the entire year. The Company has evaluated subsequent events through the time of filing this Quarterly Report on Form 10-Q with the SEC. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is permitted. The impact that the standard will have on the Company's consolidated financial statements will depend upon certain criteria including the timing of the exercise and release of equity instruments, the value realized upon exercise or release of equity instruments and the fair value of the equity instruments when they were granted. The excess tax benefit from the exercise of equity instruments was $2,844 and $5,822 for the nine months ended September 30, 2016 and 2015 , respectively. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). The standard requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact that the standard will have and does not expect it to have a material impact on its consolidated financial statements upon adoption. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating the impact that the standard will have and does not expect it to have a material impact on its consolidated financial statements upon adoption. In November 2015, the FASB issued amended guidance that clarifies that in a classified statement of financial position, an entity shall classify deferred tax liabilities and assets as non-current amounts. The new guidance supersedes ASC 740-10-45-5 which required the deferred tax assets and liabilities for a particular tax jurisdiction be allocated between current and non-current deferred tax assets for that tax jurisdiction on the basis of the financial accounting classification of the related asset or liability for which the temporary difference existed. The new standard will become effective for the Company's fiscal year beginning January 1, 2017. The Company has determined that the standard will not have a material impact on its consolidated financial statements upon adoption. Current deferred tax assets at September 30, 2016 and December 31, 2015 were $24,620 and $20,346 , respectively. Current deferred tax liabilities at September 30, 2016 and December 31, 2015 were $4,047 and $3,190 , respectively. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 ("ASU 2014-09") "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in "Revenue Recognition (Topic 605)", and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements and does not expect it to have a material impact on its consolidated financial statements upon adoption. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories consist of the following: September 30, December 31, 2016 2015 Components and raw materials $ 99,251 $ 70,394 Work-in-process 29,316 43,259 Finished components and devices 113,803 90,085 Total $ 242,370 $ 203,738 The Company recorded inventory provisions totaling $6,518 and $4,336 for the three months ended September 30, 2016 and 2015 , respectively, and $16,243 and $11,347 for the nine months ended September 30, 2016 and 2015 , respectively. These provisions relate to the recoverability of the value of inventories due to technological changes and excess quantities. These provisions are reported as a reduction to components and raw materials and finished components and devices. |
Accrued Expenses And Other Liab
Accrued Expenses And Other Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses And Other Liabilities | ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following: September 30, December 31, 2016 2015 Accrued compensation $ 39,164 $ 33,617 Customer deposits and deferred revenue 32,725 21,525 Current portion of accrued warranty 14,686 14,871 Other 9,801 5,654 Total $ 96,376 $ 75,667 |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | FINANCING ARRANGEMENTS The Company's borrowings under existing financing arrangements consist of the following: September 30, December 31, 2016 2015 Revolving line-of-credit facilities: European overdraft facilities $ — $ — Euro line-of-credit — — U.S. line-of-credit — — Total $ — $ — Term debt: Long-term notes $ 41,620 $ 19,667 Less: current portion (3,188 ) (2,000 ) Total long-term debt $ 38,432 $ 17,667 The U.S. and Euro lines-of-credit are available to certain foreign subsidiaries and allow for borrowings in the local currencies of those subsidiaries. At September 30, 2016 and December 31, 2015 , there were no amounts drawn on the U.S. line-of-credit, and there were $225 and $2,828 , respectively, of guarantees issued against the facility which reduces the amount of the facility available to draw. At September 30, 2016 and December 31, 2015 , there were no amounts drawn on the Euro line-of-credit, and there were $7,985 and $8,221 , respectively, of guarantees issued against the facility which reduces the amount of the facility available to draw. At September 30, 2016 , the amount due on the two long-term notes was $41,620 of which $3,188 is the current portion. The company has an unsecured note of $23,453 of which $1,188 is the current portion. The interest on this unsecured note is variable at 1.20% above the LIBOR rate and is fixed using an interest rate swap at 2.85% per annum. The unsecured note matures in May 2023, at which time the outstanding debt balance will be $15,438 . The Company has another note that is secured by the Company's corporate aircraft of $18,167 of which $2,000 is the current portion. The interest rate on this secured note is fixed at 2.81% per annum and the collateralized long-term note matures in October 2019, at which time the outstanding debt balance will be $12,000 . |
Net Income Attributable To IPG
Net Income Attributable To IPG Photonics Corporation Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Attributable To IPG Photonics Corporation Per Share | NET INCOME ATTRIBUTABLE TO IPG PHOTONICS CORPORATION PER SHARE The following table sets forth the computation of diluted net income attributable to IPG Photonics Corporation per share: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net income attributable to IPG Photonics Corporation $ 69,235 $ 62,791 $ 185,620 $ 181,450 Weighted average shares 53,071 52,675 53,039 52,628 Dilutive effect of common stock equivalents 690 717 713 762 Diluted weighted average common shares 53,761 53,392 53,752 53,390 Basic net income attributable to IPG Photonics Corporation per share $ 1.30 $ 1.19 $ 3.50 $ 3.45 Diluted net income attributable to IPG Photonics Corporation per share $ 1.29 $ 1.18 $ 3.45 $ 3.40 For the three months ended September 30, 2016 and 2015 , respectively, the computation of diluted weighted average common shares excludes common stock equivalents of 52,100 shares and 9,000 shares which includes restricted stock units ("RSUs") of 2,500 and 1,600 and performance stock units ("PSUs") of 0 and 4,300 , respectively. For the nine months ended September 30, 2016 and 2015 , respectively, the computation of diluted weighted average common shares excludes common stock equivalents of 80,600 and 40,600 shares which includes RSUs of 20,900 and 24,200 and PSUs of 3,300 and 9,400 , respectively. These common stock equivalents are excluded because the effect of including them would be anti-dilutive. On July 28, 2016, the Company announced that its Board of Directors authorized a share repurchase program (the “Program”) to mitigate the dilutive impact of shares issued upon exercise or release under the Company's various employee and director equity compensation and employee stock purchase plans. Under the Program, the Company's management is authorized to repurchase shares of common stock in an amount not to exceed the number of shares issued to employees and directors under its various employee and director equity compensation and employee stock purchase plans from January 1, 2016 through December 31, 2017. The Program limits aggregate share repurchases to no more than $100,000 over a period ending June 30, 2018. For the three months ended September 30, 2016 and nine months ended September 30, 2016 , the Company repurchased 41,800 shares of its common stock with an average price of $83.33 per share in the open market. The impact on the reduction of weighted average shares for the three months ended September 30, 2016 and nine months ended September 30, 2016 was 6,090 shares and 2,044 shares, respectively. There were no previous Program repurchases made by the Company prior to these periods. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS Derivative instruments – The Company's primary market exposures are to interest rates and foreign exchange rates. The Company uses certain derivative financial instruments to help manage these exposures. The Company executes these instruments with financial institutions it judges to be credit-worthy. The Company does not hold or issue derivative financial instruments for trading or speculative purposes. The Company recognizes all derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets. The Company has no derivatives that are not accounted for as a hedging instrument. Cash flow hedges – The Company entered into a cash flow hedge which is an interest rape swap associated with a new long-term note issued during the second quarter of 2016 that will terminate with long-term note in May 2023. The Company previously had a cash flow hedge which was an interest rate swap associated with a U.S. long-term note which matured in June 2015. The fair value amounts in the consolidated balance sheet related to the interest rate swaps were: Notional Amounts 1 Other Assets Other Long-Term Liabilities September 30, December 31, September 30, December 31, September 30, December 31, 2016 2015 2016 2015 2016 2015 $ 23,453 $ — $ 164 $ — $ — $ — (1) Notional amounts represent the gross contract/notional amount of the derivatives outstanding. The derivative gains and losses in the consolidated statements of income related to the Company's interest rate swap contracts was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Effective portion recognized in other comprehensive loss, pretax: Interest rate swap $ (67 ) $ — $ 172 $ 304 Effective portion reclassified from other comprehensive loss to interest expense, pretax: Interest rate swap $ (8 ) $ — $ (8 ) $ (153 ) Ineffective portion recognized in income: Interest rate swap $ — $ — $ — $ — |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company's financial instruments consist of cash equivalents, short-term investments, accounts receivable, auction rate securities, accounts payable, drawings on revolving lines of credit, long-term debt, contingent purchase consideration and interest rate swaps. The valuation techniques used to measure fair value are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect internal market assumptions. These two types of inputs create the following fair value hierarchy: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The carrying amounts of cash equivalents, short-term investments, accounts receivable, accounts payable, drawings on revolving lines of credit, the long-term notes and interest rate swaps are considered reasonable estimates of their fair market value, due to the short maturity of most of these instruments or as a result of the competitive market interest rates, which have been negotiated. The following table presents information about the Company's assets and liabilities measured at fair value: Fair Value Measurements at September 30, 2016 Total Level 1 Level 2 Level 3 Assets Cash equivalents $ 367,005 $ 367,005 $ — $ — Short-term investments 126,860 126,860 — — Interest rate swap 164 — 164 — Auction rate securities 1,142 — — 1,142 Total assets $ 495,171 $ 493,865 $ 164 $ 1,142 Liabilities Long-term notes $ 41,620 $ — $ 41,620 $ — Contingent purchase consideration 21 — — 21 Total liabilities $ 41,641 $ — $ 41,620 $ 21 Fair Value Measurements at December 31, 2015 Total Level 1 Level 2 Level 3 Assets Cash equivalents $ 214,232 $ 214,232 $ — $ — Short-term investments 106,375 106,375 — — Auction rate securities 1,136 — — 1,136 Total assets $ 321,743 $ 320,607 $ — $ 1,136 Liabilities Long-term notes $ 19,667 $ 19,667 $ — $ — Contingent purchase consideration 20 — — 20 Total liabilities $ 19,687 $ 19,667 $ — $ 20 Short-term investments are recorded at book value. Unrealized gains or losses are not recorded since these investments are considered held-to-maturity and consist of liquid investments including U.S. government and government agency notes, corporate notes, commercial paper and certificates of deposit with original maturities of greater than three months but less than one year. The fair value of these investments as of September 30, 2016 and December 31, 2015 was $126,860 and $106,375 , respectively, which represents an unrealized loss of $110 and $209 , respectively, as compared to the book value recorded on the Consolidated Balance Sheets for the same periods. The fair value of the auction rate securities considered prices observed in inactive secondary markets for the securities held by the Company. The fair value of accrued contingent purchase consideration incurred was determined using an income approach at the acquisition date and reporting date. That approach is based on significant inputs that are not observable in the market. Key assumptions include assessing the probability of meeting certain milestones required to earn the contingent purchase consideration. Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Auction Rate Securities Balance, beginning of period $ 1,140 $ 1,132 $ 1,136 $ 1,128 Change in fair value and accretion 2 2 6 6 Balance, end of period $ 1,142 $ 1,134 $ 1,142 $ 1,134 Contingent Purchase Consideration Balance, beginning of period $ 20 $ 80 $ 20 $ 98 Period transactions — (7 ) — (7 ) Change in fair value and currency fluctuations 1 (4 ) 1 (22 ) Balance, end of period $ 21 $ 69 $ 21 $ 69 |
Goodwill And Intangibles
Goodwill And Intangibles | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangibles | GOODWILL AND INTANGIBLES The following table sets forth the changes in the carrying amount of goodwill for the nine months ended September 30, 2016 : Amounts Balance at January 1 $ 505 Foreign exchange adjustment (1 ) Total goodwill arising from acquisition 19,638 Balance at September 30 $ 20,142 Intangible assets, subject to amortization, consisted of the following: September 30, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted- Average Lives Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted- Average Lives Patents $ 6,641 $ (4,838 ) $ 1,803 6 Years $ 6,641 $ (4,573 ) $ 2,068 6 Years Customer relationships 12,798 (3,548 ) 9,250 5 Years 3,325 (3,092 ) 233 5 Years Production know-how 6,714 (3,959 ) 2,755 8 Years 6,672 (3,339 ) 3,333 8 Years Technology, trademark and tradename 18,002 (3,438 ) 14,564 8 Years 8,247 (1,977 ) 6,270 8 Years $ 44,155 $ (15,783 ) $ 28,372 $ 24,885 $ (12,981 ) $ 11,904 During the second quarter of 2016, the Company acquired Menara Networks, Inc. ("Menara"). Menara is located in Dallas, Texas. The Company paid $46,831 which represents the fair value of Menara on that date. As a result of the acquisition, the Company recorded intangible assets of $19,300 related to technology, tradename and customer relationships. Additionally, the Company recorded $19,638 of goodwill related to anticipated expansion of the Company's product offerings within the telecom market. The goodwill arising from this acquisition will not be deductible for tax purposes. The purchase price allocations included in the Company's financial statements are not complete. They represent the preliminary fair value estimates as of September 30, 2016 and are subject to subsequent adjustment as the Company obtains additional information during the measurement period and finalizes its fair value estimates. Any subsequent adjustments to these fair value estimates occurring during the measurement period will result in an adjustment to goodwill or income, as applicable. Amortization expense for the three months ended September 30, 2016 and 2015 was $1,252 and $585 , respectively. Amortization expense for the nine months ended September 30, 2016 and 2015 was $2,696 and $1,706 , respectively. The estimated future amortization expense for intangibles for the remainder of 2016 and subsequent years is as follows: 2016 2017 2018 2019 2020 Thereafter Total $1,319 $4,991 $4,926 $4,821 $4,185 $8,130 $28,372 |
Product Warranties
Product Warranties | 9 Months Ended |
Sep. 30, 2016 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | PRODUCT WARRANTIES The Company typically provides one to three -year parts and service warranties on lasers and amplifiers. Most of the Company's sales offices provide support to customers in their respective geographic areas. Warranty reserves have generally been sufficient to cover product warranty repair and replacement costs. The following table summarizes product warranty activity recorded during the nine months ended September 30, 2016 and 2015 . 2016 2015 Balance at January 1 $ 28,210 $ 19,272 Provision for warranty accrual 16,098 16,424 Warranty claims (12,273 ) (8,627 ) Foreign currency translation 643 (1,059 ) Balance at September 30 $ 32,678 $ 26,010 Accrued warranty reported in the accompanying consolidated financial statements as of September 30, 2016 and December 31, 2015 consisted of $14,686 and $14,871 in accrued expenses and other liabilities and $17,992 and $13,339 in other long-term liabilities, respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES A reconciliation of the total amounts of unrecognized tax benefits is as follows: 2016 2015 Balance at January 1 $ 7,579 $ 6,494 Reductions of prior period positions — — Additions for tax positions in prior period — — (Reductions) additions for tax positions in current period (1,876 ) — Balance at September 30 $ 5,703 $ 6,494 Substantially all of the liability for uncertain tax benefits related to various federal, state and foreign income tax matters, would benefit the Company's effective tax rate, if recognized. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES From time to time, the Company may be involved in disputes and legal proceedings in the ordinary course of its business. These proceedings may include allegations of infringement of intellectual property, commercial disputes and employment matters. As of September 30, 2016 and through the filing date of these Financial Statements, the Company has no legal proceedings ongoing that management estimates could have a material effect on the Company's Consolidated Financial Statements. |
Recent Accounting Pronounceme20
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including income tax impact, classification on the statement of cash flows and forfeitures. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is permitted. The impact that the standard will have on the Company's consolidated financial statements will depend upon certain criteria including the timing of the exercise and release of equity instruments, the value realized upon exercise or release of equity instruments and the fair value of the equity instruments when they were granted. The excess tax benefit from the exercise of equity instruments was $2,844 and $5,822 for the nine months ended September 30, 2016 and 2015 , respectively. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). The standard requires a lessee to recognize assets and liabilities on the balance sheet for leases with lease terms greater than 12 months. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, and early adoption is permitted. The Company is currently evaluating the impact that the standard will have and does not expect it to have a material impact on its consolidated financial statements upon adoption. In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). The standard addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. ASU 2016-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, and early adoption is not permitted. The Company is currently evaluating the impact that the standard will have and does not expect it to have a material impact on its consolidated financial statements upon adoption. In November 2015, the FASB issued amended guidance that clarifies that in a classified statement of financial position, an entity shall classify deferred tax liabilities and assets as non-current amounts. The new guidance supersedes ASC 740-10-45-5 which required the deferred tax assets and liabilities for a particular tax jurisdiction be allocated between current and non-current deferred tax assets for that tax jurisdiction on the basis of the financial accounting classification of the related asset or liability for which the temporary difference existed. The new standard will become effective for the Company's fiscal year beginning January 1, 2017. The Company has determined that the standard will not have a material impact on its consolidated financial statements upon adoption. Current deferred tax assets at September 30, 2016 and December 31, 2015 were $24,620 and $20,346 , respectively. Current deferred tax liabilities at September 30, 2016 and December 31, 2015 were $4,047 and $3,190 , respectively. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 ("ASU 2014-09") "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in "Revenue Recognition (Topic 605)", and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements and does not expect it to have a material impact on its consolidated financial statements upon adoption. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Components Of Inventories | Inventories consist of the following: September 30, December 31, 2016 2015 Components and raw materials $ 99,251 $ 70,394 Work-in-process 29,316 43,259 Finished components and devices 113,803 90,085 Total $ 242,370 $ 203,738 |
Accrued Expenses And Other Li22
Accrued Expenses And Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Components Of Accrued Expenses And Other Liabilities | Accrued expenses and other liabilities consist of the following: September 30, December 31, 2016 2015 Accrued compensation $ 39,164 $ 33,617 Customer deposits and deferred revenue 32,725 21,525 Current portion of accrued warranty 14,686 14,871 Other 9,801 5,654 Total $ 96,376 $ 75,667 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings Under Existing Financing Arrangements | The Company's borrowings under existing financing arrangements consist of the following: September 30, December 31, 2016 2015 Revolving line-of-credit facilities: European overdraft facilities $ — $ — Euro line-of-credit — — U.S. line-of-credit — — Total $ — $ — Term debt: Long-term notes $ 41,620 $ 19,667 Less: current portion (3,188 ) (2,000 ) Total long-term debt $ 38,432 $ 17,667 |
Net Income Attributable To IP24
Net Income Attributable To IPG Photonics Corporation Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation Of Diluted Net Income Per Share | The following table sets forth the computation of diluted net income attributable to IPG Photonics Corporation per share: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Net income attributable to IPG Photonics Corporation $ 69,235 $ 62,791 $ 185,620 $ 181,450 Weighted average shares 53,071 52,675 53,039 52,628 Dilutive effect of common stock equivalents 690 717 713 762 Diluted weighted average common shares 53,761 53,392 53,752 53,390 Basic net income attributable to IPG Photonics Corporation per share $ 1.30 $ 1.19 $ 3.50 $ 3.45 Diluted net income attributable to IPG Photonics Corporation per share $ 1.29 $ 1.18 $ 3.45 $ 3.40 |
Derivative Financial Instrume25
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Cash Flow Hedges | The fair value amounts in the consolidated balance sheet related to the interest rate swaps were: Notional Amounts 1 Other Assets Other Long-Term Liabilities September 30, December 31, September 30, December 31, September 30, December 31, 2016 2015 2016 2015 2016 2015 $ 23,453 $ — $ 164 $ — $ — $ — (1) Notional amounts represent the gross contract/notional amount of the derivatives outstanding. |
Derivative Gains (Losses) In The Consolidated Statements Of Income Related To Interest Rate Swap Contracts | The derivative gains and losses in the consolidated statements of income related to the Company's interest rate swap contracts was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Effective portion recognized in other comprehensive loss, pretax: Interest rate swap $ (67 ) $ — $ 172 $ 304 Effective portion reclassified from other comprehensive loss to interest expense, pretax: Interest rate swap $ (8 ) $ — $ (8 ) $ (153 ) Ineffective portion recognized in income: Interest rate swap $ — $ — $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets And Liabilities Measured At Fair Value | The following table presents information about the Company's assets and liabilities measured at fair value: Fair Value Measurements at September 30, 2016 Total Level 1 Level 2 Level 3 Assets Cash equivalents $ 367,005 $ 367,005 $ — $ — Short-term investments 126,860 126,860 — — Interest rate swap 164 — 164 — Auction rate securities 1,142 — — 1,142 Total assets $ 495,171 $ 493,865 $ 164 $ 1,142 Liabilities Long-term notes $ 41,620 $ — $ 41,620 $ — Contingent purchase consideration 21 — — 21 Total liabilities $ 41,641 $ — $ 41,620 $ 21 Fair Value Measurements at December 31, 2015 Total Level 1 Level 2 Level 3 Assets Cash equivalents $ 214,232 $ 214,232 $ — $ — Short-term investments 106,375 106,375 — — Auction rate securities 1,136 — — 1,136 Total assets $ 321,743 $ 320,607 $ — $ 1,136 Liabilities Long-term notes $ 19,667 $ 19,667 $ — $ — Contingent purchase consideration 20 — — 20 Total liabilities $ 19,687 $ 19,667 $ — $ 20 |
Fair Value Of Auction Rate Securities | Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Auction Rate Securities Balance, beginning of period $ 1,140 $ 1,132 $ 1,136 $ 1,128 Change in fair value and accretion 2 2 6 6 Balance, end of period $ 1,142 $ 1,134 $ 1,142 $ 1,134 Contingent Purchase Consideration Balance, beginning of period $ 20 $ 80 $ 20 $ 98 Period transactions — (7 ) — (7 ) Change in fair value and currency fluctuations 1 (4 ) 1 (22 ) Balance, end of period $ 21 $ 69 $ 21 $ 69 |
Goodwill And Intangibles (Table
Goodwill And Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table sets forth the changes in the carrying amount of goodwill for the nine months ended September 30, 2016 : Amounts Balance at January 1 $ 505 Foreign exchange adjustment (1 ) Total goodwill arising from acquisition 19,638 Balance at September 30 $ 20,142 |
Intangible Assets | Intangible assets, subject to amortization, consisted of the following: September 30, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted- Average Lives Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted- Average Lives Patents $ 6,641 $ (4,838 ) $ 1,803 6 Years $ 6,641 $ (4,573 ) $ 2,068 6 Years Customer relationships 12,798 (3,548 ) 9,250 5 Years 3,325 (3,092 ) 233 5 Years Production know-how 6,714 (3,959 ) 2,755 8 Years 6,672 (3,339 ) 3,333 8 Years Technology, trademark and tradename 18,002 (3,438 ) 14,564 8 Years 8,247 (1,977 ) 6,270 8 Years $ 44,155 $ (15,783 ) $ 28,372 $ 24,885 $ (12,981 ) $ 11,904 |
Estimated Future Amortization Expense For Intangibles | The estimated future amortization expense for intangibles for the remainder of 2016 and subsequent years is as follows: 2016 2017 2018 2019 2020 Thereafter Total $1,319 $4,991 $4,926 $4,821 $4,185 $8,130 $28,372 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Product Warranties Disclosures [Abstract] | |
Summary Of Product Warranty Activity | The following table summarizes product warranty activity recorded during the nine months ended September 30, 2016 and 2015 . 2016 2015 Balance at January 1 $ 28,210 $ 19,272 Provision for warranty accrual 16,098 16,424 Warranty claims (12,273 ) (8,627 ) Foreign currency translation 643 (1,059 ) Balance at September 30 $ 32,678 $ 26,010 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the total amounts of unrecognized tax benefits is as follows: 2016 2015 Balance at January 1 $ 7,579 $ 6,494 Reductions of prior period positions — — Additions for tax positions in prior period — — (Reductions) additions for tax positions in current period (1,876 ) — Balance at September 30 $ 5,703 $ 6,494 |
Recent Accounting Pronounceme30
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Excess tax benefit from the exercise of equity instruments | $ 2,844 | $ 5,822 | |
Deferred tax assets, current | 24,620 | $ 20,346 | |
Deferred tax liabilities, current | $ 4,047 | $ 3,190 |
Inventories (Components Of Inve
Inventories (Components Of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Components and raw materials | $ 99,251 | $ 70,394 |
Work-in-process | 29,316 | 43,259 |
Finished components and devices | 113,803 | 90,085 |
Total | $ 242,370 | $ 203,738 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | ||||
Inventory provisions | $ 6,518 | $ 4,336 | $ 16,243 | $ 11,347 |
Accrued Expenses And Other Li33
Accrued Expenses And Other Liabilities (Components Of Accrued Expenses And Other Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 39,164 | $ 33,617 |
Customer deposits and deferred revenue | 32,725 | 21,525 |
Current portion of accrued warranty | 14,686 | 14,871 |
Other | 9,801 | 5,654 |
Total | $ 96,376 | $ 75,667 |
Financing Arrangements (Borrowi
Financing Arrangements (Borrowings Under Existing Financing Arrangements) (Details) | 9 Months Ended | |||
Sep. 30, 2016USD ($)note | May 31, 2023USD ($) | Oct. 31, 2019USD ($) | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||||
Revolving line-of-credit facilities: | $ 0 | $ 0 | ||
Term debt: | ||||
Less: current portion | (3,188,000) | (2,000,000) | ||
Total long-term debt | $ 38,432,000 | 17,667,000 | ||
Number of long term notes | note | 2 | |||
Unsecured note | $ 23,453,000 | |||
Unsecured Debt | ||||
Term debt: | ||||
Current portion of long-term note | $ 1,188,000 | |||
Unsecured Debt | Scenario, Forecast | ||||
Term debt: | ||||
Amount due on long-term note | $ 15,438,000 | |||
Unsecured Debt | Interest rate swap | ||||
Term debt: | ||||
Derivative, fixed interest rate | 2.85% | |||
Unsecured Debt | London Interbank Offered Rate (LIBOR) | ||||
Term debt: | ||||
Debt instrument, basis spread on variable rate | 1.20% | |||
Secured Debt | ||||
Term debt: | ||||
Amount due on long-term note | $ 18,167,000 | |||
Current portion of long-term note | $ 2,000,000 | |||
Interest rate percentage | 2.81% | |||
Secured Debt | Scenario, Forecast | ||||
Term debt: | ||||
Amount due on long-term note | $ 12,000,000 | |||
European overdraft facilities | ||||
Debt Instrument [Line Items] | ||||
Revolving line-of-credit facilities: | $ 0 | 0 | ||
Euro line-of-credit | ||||
Debt Instrument [Line Items] | ||||
Revolving line-of-credit facilities: | 0 | 0 | ||
Term debt: | ||||
Amount drawn on line of credit | 0 | 0 | ||
Guarantees issued | 7,985,000 | 8,221,000 | ||
U.S. line-of-credit | ||||
Debt Instrument [Line Items] | ||||
Revolving line-of-credit facilities: | 0 | 0 | ||
Term debt: | ||||
Amount drawn on line of credit | 0 | 0 | ||
Guarantees issued | 225,000 | 2,828,000 | ||
Long-term notes | ||||
Term debt: | ||||
Long-term notes | 41,620,000 | $ 19,667,000 | ||
Amount due on long-term note | 41,620,000 | |||
Current portion of long-term note | $ 3,188,000 |
Net Income Attributable To IP35
Net Income Attributable To IPG Photonics Corporation Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jul. 28, 2016 | |
Earnings Per Share [Abstract] | |||||
Net income attributable to IPG Photonics Corporation | $ 69,235 | $ 62,791 | $ 185,620 | $ 181,450 | |
Weighted average shares (in shares) | 53,071,000 | 52,675,000 | 53,039,000 | 52,628,000 | |
Dilutive effect of common stock equivalents (in shares) | 690,000 | 717,000 | 713,000 | 762,000 | |
Diluted weighted average common shares (in shares) | 53,761,000 | 53,392,000 | 53,752,000 | 53,390,000 | |
Basic net income attributable to IPG Photonics Corporation per share (in dollars per share) | $ 1.30 | $ 1.19 | $ 3.50 | $ 3.45 | |
Diluted net income attributable to IPG Photonics Corporation per share (in dollars per share) | $ 1.29 | $ 1.18 | $ 3.45 | $ 3.40 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Options excluded from computation of diluted weighted average common shares (in shares) | 52,100,000 | 9,000,000 | 80,600,000 | 40,600,000 | |
Share repurchase amount (no more than) (in shares) | 100,000 | ||||
Stock repurchased during period (in shares) | 41,800 | 41,800 | |||
Stock repurchase average price (in dollars per share) | $ 83.33 | $ 83.33 | |||
Effect on weighted average number of shares outstanding (in shares) | 6,090 | 2,044 | |||
RSUs | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Options excluded from computation of diluted weighted average common shares (in shares) | 2,500,000 | 1,600,000 | 20,900,000 | 24,200,000 | |
PSUs | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Options excluded from computation of diluted weighted average common shares (in shares) | 0 | 4,300,000 | 3,300,000 | 9,400,000 |
Derivative Financial Instrume36
Derivative Financial Instruments (Fair Value Of Cash Flow Hedges) (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Interest rate swap | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivatives | $ 23,453,000 | $ 0 |
Nondesignated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivatives | 0 | |
Other Assets | Interest rate swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 164,000 | 0 |
Other Long-Term Liabilities | Interest rate swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 0 | $ 0 |
Derivative Financial Instrume37
Derivative Financial Instruments (Derivative Gains (Losses) In The Consolidated Statements Of Income Related To Interest Rate Swap Contracts) (Details) - Interest rate swap - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effective portion recognized in other comprehensive loss, pretax | $ (67) | $ 0 | $ 172 | $ 304 |
Effective portion reclassified from other comprehensive loss to interest expense, pretax | (8) | 0 | (8) | (153) |
Ineffective portion recognized in income | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets And Liabilities Measured At Fair Value) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 495,171 | $ 321,743 |
Liabilities | 41,641 | 19,687 |
Held-to-maturity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities, unrealized loss | 110 | 209 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 493,865 | 320,607 |
Liabilities | 0 | 19,667 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 164 | 0 |
Liabilities | 41,620 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1,142 | 1,136 |
Liabilities | 21 | 20 |
Cash equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 367,005 | 214,232 |
Cash equivalents | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 367,005 | 214,232 |
Cash equivalents | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Cash equivalents | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 126,860 | 106,375 |
Short-term investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 126,860 | 106,375 |
Short-term investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Short-term investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Interest rate swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 164 | |
Interest rate swap | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Interest rate swap | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 164 | |
Interest rate swap | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Auction rate securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1,142 | 1,136 |
Auction rate securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Auction rate securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Auction rate securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1,142 | 1,136 |
Long-term notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 41,620 | 19,667 |
Long-term notes | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 19,667 |
Long-term notes | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 41,620 | 0 |
Long-term notes | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Contingent purchase consideration | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 21 | 20 |
Contingent purchase consideration | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Contingent purchase consideration | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | 0 | 0 |
Contingent purchase consideration | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities | $ 21 | $ 20 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Of Auction Rate Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Auction Rate Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | $ 1,140 | $ 1,132 | $ 1,136 | $ 1,128 |
Change in fair value and accretion | 2 | 2 | 6 | 6 |
Balance, end of period | 1,142 | 1,134 | 1,142 | 1,134 |
Contingent Purchase Consideration | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Balance, beginning of period | 20 | 80 | 20 | 98 |
Period transactions | 0 | (7) | 0 | (7) |
Change in fair value and currency fluctuations | 1 | (4) | 1 | (22) |
Balance, end of period | $ 21 | $ 69 | $ 21 | $ 69 |
Goodwill And Intangibles (Sched
Goodwill And Intangibles (Schedule of Changes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2016 | Sep. 30, 2016 | |
Goodwill [Roll Forward] | ||
Balance at January 1 | $ 505 | |
Foreign exchange adjustment | (1) | |
Total goodwill arising from acquisition | $ 19,638 | 19,638 |
Balance at September 30 | $ 20,142 |
Goodwill And Intangibles (Intan
Goodwill And Intangibles (Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 44,155 | $ 24,885 |
Accumulated Amortization | (15,783) | (12,981) |
Net Carrying Amount | 28,372 | 11,904 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,641 | 6,641 |
Accumulated Amortization | (4,838) | (4,573) |
Net Carrying Amount | $ 1,803 | $ 2,068 |
Weighted- Average Lives | 6 years | 6 years |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 12,798 | $ 3,325 |
Accumulated Amortization | (3,548) | (3,092) |
Net Carrying Amount | $ 9,250 | $ 233 |
Weighted- Average Lives | 5 years | 5 years |
Production know-how | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 6,714 | $ 6,672 |
Accumulated Amortization | (3,959) | (3,339) |
Net Carrying Amount | $ 2,755 | $ 3,333 |
Weighted- Average Lives | 8 years | 8 years |
Technology, trademark and tradename | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 18,002 | $ 8,247 |
Accumulated Amortization | (3,438) | (1,977) |
Net Carrying Amount | $ 14,564 | $ 6,270 |
Weighted- Average Lives | 8 years | 8 years |
Goodwill And Intangibles (Narra
Goodwill And Intangibles (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | |||||
Goodwill, acquired during period | $ 19,638 | $ 19,638 | |||
Amortization expense | $ 1,252 | $ 585 | $ 2,696 | $ 1,706 | |
Menara Networks | |||||
Business Acquisition [Line Items] | |||||
Business combination, consideration transferred | 46,831 | ||||
Business combination, intangibles assets | $ 19,300 |
Goodwill And Intangibles (Estim
Goodwill And Intangibles (Estimated Future Amortization Expense For Intangibles) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,016 | $ 1,319 | |
2,017 | 4,991 | |
2,018 | 4,926 | |
2,019 | 4,821 | |
2,020 | 4,185 | |
Thereafter | 8,130 | |
Net Carrying Amount | $ 28,372 | $ 11,904 |
Product Warranties (Narrative)
Product Warranties (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Product Warranty Liability [Line Items] | ||
Accrued warranty reported in accrued expenses and other liabilities | $ 14,686 | $ 14,871 |
Accrued warranty reported in other long-term liabilities | $ 17,992 | $ 13,339 |
Minimum | ||
Product Warranty Liability [Line Items] | ||
Service warranties on lasers and amplifiers | 1 year | |
Maximum | ||
Product Warranty Liability [Line Items] | ||
Service warranties on lasers and amplifiers | 3 years |
Product Warranties (Summary Of
Product Warranties (Summary Of Product Warranty Activity) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at January 1 | $ 28,210 | $ 19,272 |
Provision for warranty accrual | 16,098 | 16,424 |
Warranty claims | (12,273) | (8,627) |
Foreign currency translation | 643 | (1,059) |
Balance at September 30 | $ 32,678 | $ 26,010 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at January 1 | $ 7,579 | $ 6,494 |
Reductions of prior period positions | 0 | 0 |
Additions for tax positions in prior period | 0 | 0 |
(Reductions) additions for tax positions in current period | (1,876) | 0 |
Balance at September 30 | $ 5,703 | $ 6,494 |